Race to the Cloud: TSIA Members Quickly Adopting Cloud Solutions

If I were to look into my crystal ball and predict which future piece of TSIA research will be the most downloaded article in Q4 2010, my guess is the report my research peer Tim Flannery will publish based on his upcoming session at our Las Vegas Technology Services World (TSW) Conference, “The Cloudprem Checklist: What You Need to Know Before Transitioning from On-Premise to Cloud Service Offerings.” From what I’m hearing, software vendors who have not already made the move to the cloud are being pushed to do so by both customers and prospects. Some are introducing ‘cloud’ pricing for their on-premise tools, which essentially is financing the cost of the deployment over a number of years, with monthly payments similar to OnDemand subscription pricing schemes. Tim has been talking to a lot of companies that have made the move to the cloud, and I’m sure there will be some great lessons on what to do…and what NOT to do.

The report, “Cloudprem: What You Must Know Before Making the Transition from On-premise to Cloud-based (or, On-demand) Services,” which will be published on October 19th to coincide with Tim’s conference presentation, includes an overview of what impacts to expect when moving to the cloud across services sales, services delivery, services operations, services engineering, services marketing and product engineering. I think this one section makes the report a “must read” for members, but there’s more great content in the report, including what questions to ask to assess readiness, and a very comprehensive list of support services functional area considerations.

As a proof point of cloud adoption, I was going back over my 2006 technology survey results, and in the most core of support technologies–incident management–only 13% of members were using an OnDemand/SaaS/Cloud solution. In the 2010 survey, that percent has risen to 25%–almost doubled. And, the top installed incident management product has changed from an OnPremise solution in 2006–Oracle Siebel CRM–to an OnDemand solution in 2010–Salesforce.com.

What impact is this having on technology infrastructures? In my view, it is creating an even more fragmented infrastructure, as IT continues to build out CRM/ERP deployments with OnPremise tools, and business users are bringing in OnDemand point solutions with overlapping functionality without doing the required integration work–handicapping both the CRM deployment AND the OnDemand deployment, impacting time to money for both.

Our TSW conference is just a few short weeks away, and I encourage all companies attending to send someone to Tim’s session, and be sure to download a copy of the report when it is published on the 19th. And as always, thanks for reading!

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